Inotiv Reports $130.7 Million Revenue with 23.5% Growth, Faces Net Loss of $17.6 Million

Inotiv, Inc. reported a total revenue of $130.7 million for the three months ended June 30, 2025, marking a 23.5% increase from $105.8 million in the same period last year. This growth was driven by a 34.1% rise in revenue from the Research Models and Services (RMS) segment, which generated $82.5 million, and an 8.9% increase in the Discovery and Safety Assessment (DSA) segment, which brought in $48.2 million. For the nine months ending June 30, 2025, total revenue reached $374.9 million, a 4.0% increase compared to $360.3 million for the same period in 2024. Despite the revenue growth, the company reported a consolidated net loss of $17.6 million for the quarter, an improvement from a loss of $26.1 million in the prior year, and a net loss of $60.1 million for the nine months, down from $90.0 million.

The company experienced significant operational changes, including a restructuring plan aimed at optimizing its facilities and reducing costs. In the first phase of this plan, completed in September 2024, Inotiv closed several facilities and sold its Israeli operations. The second phase, which is currently underway, is expected to yield annual savings of $6.0 to $7.0 million and is projected to be completed by March 2026. Additionally, Inotiv has been focusing on expanding its non-human primate (NHP) client base and pre-selling NHP inventory to stabilize revenue streams.

Inotiv's financial position showed a decrease in cash and cash equivalents, which fell to $6.2 million as of June 30, 2025, down from $21.4 million at the end of the previous fiscal year. The company has access to a $15 million revolving credit facility, which had no outstanding balance as of the reporting date. However, it has reported negative operating cash flows and net losses, raising concerns about compliance with financial covenants under its credit agreement. The company is actively seeking to improve its liquidity and has plans to optimize capital allocation and expense management in the coming year.

Looking ahead, Inotiv aims to enhance its operating results by increasing revenue from NHP-related products and services, as well as expanding its long-term colony management service contracts. The company is also in discussions with lenders regarding its current financial conditions and may seek additional financing to meet its cash requirements. Despite the challenges, management remains optimistic about achieving compliance with financial covenants and improving overall performance in the next fiscal year.